EUR/USD: Unlikely to weaken much further against – UOB Group

FXStreet Insights Team FXStreet

Euro (EUR) is unlikely to weaken much further against US Dollar (USD); it is more likely to consolidate in a range of 1.1520/1.1600. In the longer run, the level to watch now is 1.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The level to watch now is 1.150

24-HOUR VIEW: "EUR plunged and closed lower by 1.29% on Monday. Yesterday (Tuesday), we pointed out that “while the outsized drop appears excessive, there is a chance for EUR to test the 1.1540/1.1555 support zone before stabilisation can be expected.” EUR weakened more than expected, reaching a low of 1.1515 before rebounding to close at 1.1545 (-0.37%). The decline appears to be overstretched, and there are tentative signs of stabilisation. To put it another way, EUR is unlikely to weaken much further. Today, it is more likely to consolidate in a range of 1.1520/1.1600."

1-3 WEEKS VIEW: "Yesterday, 29 Jul, when EUR was at 1.1595, we indicated that 'the strong surge in downward momentum suggests EUR is likely to break the 1.1540/1.1555 support zone.' We added, 'the next level to watch is 1.1500.' EUR subsequently dropped to a low of 1.1515 and closed at 1.1545. As indicated, the level to watch now is 1.1500. Overall, only a breach of 1.1655 (‘strong resistance’ level was at 1.1700 yesterday) would suggest that EUR is not weakening further."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD challenges 1.1700, six-week lows

EUR/USD remains under heavy downside pressire in quite a dfrreadful start to the new trading week, putting the 1.1700 support to the test amid the marked rebound in the US Dollar. The flight-so-safety environment continues to support the Greenback following the escalating conflict in the Middle East.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold shifts its attention to $5,600 on fligh-to-safety mood

Gold climbs to levels last seen in late January past the $5,400 mark per troy ounce on Monday. The yellow metal’s strong uptick remains fuelled by incresing geopolitical tensions in the Middle East and the consequent demand for safer assets.

Bitcoin on brink of breakdown amid US-Iran war

Bitcoin (BTC) remains under pressure near the key support level of $65,700. Trading at $66,400 at the time of writing on Monday, a breakdown below this critical level would suggest a deeper correction ahead.

The week ahead: Conflict in the Middle East jolts markets

Events in the Middle East are obviously dominating financial markets this morning. The Brent crude oil price is extending gains and is higher by more than 8%, stock futures are pointing lower and the gold price is higher by more than 2%.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.